A real reflection to Oriental Yuhong’s actions of implementing economic, environmental, and social responsibilities in 2016, this report is the ninth corporate social responsibility report (CSR report) since Oriental Yuhong established CSR report release system in 2009. The following are explanations to the CSR report.

报告主体Scope of the Report

以北京东方雨虹防水技术股份有限公司为主体，包含所属分子公司、事业部及生产基地等分支机构。

Take Beijing Oriental Yuhong Waterproof Technology Co., Ltd. as the subject, including its subsidiary companies and branches, business division and production bases and other branch units.

报告改进Report Improvement

Take the Sustainability Reporting Guidelines (G4) of the Global Reporting Initiative (GRI) and national series standards on social responsibilities.

报告编制过程中邀请伙伴、员工、NGO等利益相关方参与，发挥报告在利益相关方沟通、企业社会责任绩效监控中的作用。

In the process of compilation of the report, stakeholders such as partners, employees, NGOs and others were invited to participate, and roles of the reports in stakeholders’ communication and the corporate social responsibility performance monitoring are brought into play. stakeholders.

语言版本Language

本报告以中英文形式发布。

The report is presented in Chinese and English.

报告获取Access to the report

本报告仅提供电子版。PDF版请登录公司网站http://www.yuhong.com.cn，或扫描二维码，获取电子版。​

he report is published only in electronic version. You can visit the company’s website http://www.yuhong.com.cn for an online PDF version, or scan the right side two-dimension code to obtain the electronic edition. (Contact telephone: 010-58102469, Email: sunxj@yuhong.com.cn).

The life is full of uncertainties. Our growth is accompanied by bitterness and joy. Thanks to great endeavors, we have seen great development!

A person is like a clock. His/her value is decided by his/her action. The same is the enterprise. The development of an enterprise is usually accompanied by pains and difficulties, and hard efforts. We cannot achieve our goal without conquering hardships. On the way to success, we get more and more companions and we carefully protect the sweet harvest.

Oriental Yuhong is a rare enterprise. In an unnoticeable industry, we have insisted on making unremitting endeavor for dozens of years. We view our business as a sweet business. Each of our choice is in line with human’s fundamental demand and human’s universal value. We are devoted to meaningful career and we are fulfilling the duties and responsibilities that others would not like to fulfill. We hold the dream of marching into world market and do our best to build an international enterprise. Therefore we achieve the esteem of the industry and are highly recognized by the society and customers. We get honor and dignity, and our employees get a good platform fulfill their values. They feel the benefits and warmth of our enterprise, and thus protect the hard-earned sweet business by heart.

“When heaven is about to place a great responsibility on a great man, it always first frustrates his spirit and will, exhausts his muscles and bones, exposes him to starvation and poverty, harasses him by troubles and setbacks so as to stimulate his spirit, toughen his nature and enhance his abilities.” We have made great efforts to develop this sweet business. Our growth is accompanied by sweat, tear, and even humiliation. We never waver in the fulfillment of our values and operation principles. No pains, no gains. A sweet business can’t be made without any sacrifice.

Sweetness and bitterness are twins. The sacrifice of sweetness is bitterness, and the result of bitterness is sweetness. “Never a lip is curved with pain that can't be kissed into smiles again”. Pain and pleasure are the secrets of life, also the hope of Oriental Yuhong.

Oriental Yuhong entered Chinese building waterproofing industry in 1995. In the 20-year development course, Oriental Yuhong has been devoted to providing high-quality and perfect waterproofing system solutions for important infrastructure construction projects, industrial buildings, civil buildings and commercial buildings. Now it has grown into a global waterproofing system provider. Adhering to the guideline “serving the country by developing industry, benefiting the people with good services”, Oriental Yuhong has also invested into many fields such as non-woven fabrics, building energy efficiency, mortar and energy & chemical industry. It owns many brands: Oriental Yuhong (engineering), Yuhong (civil engineering), Woniushan (energy saving and heat reservation), Tiandingfeng (non-woven fabric), Fasion (waterproofing), Vasa (mortar), Luodi (diatom mud), Wuzhou Tuyuan (energy trade), etc.

Oriental Yuhong holds more than 40 subsidiaries including Shanghai Oriental Yuhong Waterproof Technology Co., Ltd., Guangdong Oriental Yuhong Waterproof Engineering Co., Ltd., HK Oriental Yuhong Investment Co., Ltd., and Oriental Yuhong North American Co., Ltd., etc. It has 15 manufacturing, R&D, and logistic bases respectively in Shunyi District in Beijing, Jinshan District in Shanghai, Yueyang City in Hunan Province, Jinzhou City in Liaoning Province, Huizhou City in Guangdong Province, Xuzhou City in Jiangsu Province, Dezhou City in Shandong Province, Kunming City in Yunnan Province, Tangshan City in Hebei Province, Xianyang City in Shaanxi Province, Wuhu City in Anhui Province, Luzhou City in Sichuan Province, Hangzhou City in Zhejiang Province, Qingdao City in Shandong Province, Chuzhou City in Anhui Province. Oriental Yuhong has imported and built up the world-leading multi-functional production lines of modified waterproof membrane, cold self-adhesive asphalt waterproof membrane and poly waterproof membrane, and the world-leading production lines of eco-friendly waterproof coating, mortar, thermal insulation material, and non-woven fabric.

Oriental Yuhong pursuits of sustainable development continuously. It promotes the scale development with science and technology advancement, product excellence, service satisfaction, and safety & environmental protection. It has been authorized to build state key lab of special-purpose waterproof material, and has established national-certified corporate R&D center, academician work station, and post-doctoral work station, etc. Its R&D system is more and more improved, and it has built up 4 R&D centers for product, application, construction equipment and production technique. To make the scientific research catch up with the international level. Oriental Yuhong has built up Experiment Center of Emulsion Polymerization together with Lehigh University, USA, and R&D Platform of Modified Asphalt together with Asphalt Technology Co., Ltd. and R&D Laboratory of Water-based Coating in Ben Franklin TechVentures.

Oriental Yuhong is always making efforts to realize the dream of a “globalized Oriental Yuhong”, making contribution to building a harmonious habitat for people, and fulfilling the corporate vision of “building a durable and safe environment for human being and the society”. With the implementation of Oriental Yuhong’s international strategy, the products of company are exported to more than 100 countries and regions such as Germany, Brazil, Australia, the United States, Canada, Russia, Japan, Singapore, South Korea, Central Africa and South Africa.

Oriental Yuhong is responsible for solving all waterproofing problems for human beings. As a professional provider of waterproofing system solutions, Oriental Yuhong has successfully applied various of waterproofing systems to buildings, highways, urban roads and bridges, metros, urban railways, high-speed railways, airports, and water conservancy facilities. Outstanding examples are China’s representative buildings, e.g. China’s Great Hall and 2008 Beijing Olympics including the Bird’s Nest and the Water Cube, as well as important national infrastructure construction projects such as Beijing-Shanghai high-speed railway, and Beijing Metro. Oriental Yuhong has established long-term and stable strategic cooperation relationship with more than 150 large real estate developers such as Vanke, Poly, China Resources, Tenhong Land, Gemdale, Dahua Group, Huawei, and Gold Mantis. To meet end-customers’ rising demand for top-quality waterproof products, Oriental Yuhong has sold its products to ordinary families through nearly 2,000 house decoration companies and building material markets, for instance, Yezhifeng, Shichuang, Kuoda, Yuanzhou, Jinzhao and Boloni.

Core concepts: 1.Corporate concept: honesty, empathy, and beauty2.Corporate spirit: all success hinges on human effort3.Corporate belief: we coexist with the world; good people will be rewarded.4.Oriental Yuhong culture: fairness, simplicity, creation, tolerance, and contribution Spiritual culture: tenacity for achievement; pursuit for new height Interpersonal culture: honesty, equality, harmony, and frankness5.Corporate guidance: making scientific and technological innovation; serving the country by industry development6.Corporate tenet: for the motherland, for the society, for customers, for employees, and for shareholders 7.Corporate mission: to create sustainable and safe environment for human society8.Corporate responsibility: Oriental Yuhong is responsible to solve all waterproof problems of humans9.Corporate vision: the most valuable world waterproofing enterprise, a respectable Chinese enterprise.

社会责任管理Social Responsibility Management

To
fulfill social responsibility is the inner factor of Oriental Yuhong.
Through whole system and multi-dimensional responsibility management
concept, and starting from research and development, production, sales,
construction and other aspects, Oriental Yuhong strives to provide much
better products and services by more environmental friendly, more energy
efficient, safer and more effective means, and implants the concept of
responsibility into its daily production operation.

Oriental
Yuhong established a social responsibility work team, whose chief is
Oriental Yuhong General Manager and whose members are General Managers
of Oriental Yuhong subsidiaries and divisions, directors of different
centers and factories. Members work in concert to push forward the
social responsibility fulfillment of their units.

（二） 利益相关方沟通参与

Stakeholders Communication and Participation

利益相关方沟通实例Stakeholders Communication Examples

ShareholdersIn
2016, Oriental Yuhong made a total of 127 public notices throughout the
year, of which, 4 were made on a regular basis in order to ensure
investors’ timely supervision and transparent operation of the company.
The company held 6 shareholders general meetings, 19 meetings of the
Board of Directors, 11 meetings of the Board of Supervisors to guarantee
standard operation of the company. In addition, the company organized
investor’s visit and survey to the company for many times, introducing
to them the company's production and operation conditions and
development strategy, answering questions of the analysts about sales
model, operating performance, investment growth, and research and
development ability etc. At the same time, the company also answered
nearly 300 telephone calls for Internet counseling from investors, and
replied 298 times of Internet counseling.

Xiang
Feng instructed the visitor group to visit the water-based coat workshop
and the high polymer membrane workshop in the Yueyang production base.
He gave detailed introduction to the development history, enterprise
scale, market share, main products, product performances, capacity,
production value, and taxes of Oriental Yuhong. Thanks to this visit,
visitors fully understand the production concept and field management
measures of Oriental Yuhong, and clearly see the strict quality control
of Oriental Yuhong. They stated they would try to get opportunity to
cooperate with Oriental Yuhong.

Employees
On November 1, 2016, Oriental Yuhong carried out the first employee
training after the training course reformation. The length of this
employee training rose from 5.5 days to 13 days. The course content was
colorful. It included theoretical training, military training, practices
in plant, and field practices, etc., which helped new employees
integrate into the collective. In the training, the senior management of
Oriental Yuhong expressed warmly welcome to the joining of new
employees. They sincerely hoped new employees could live healthily and
work merrily in the Oriental Yuhong family to achieve their dreams.

Society On
January 14, 2016, Oriental Yuhong and Changsha Economic & Trade
Channel carried out public welfare activity “Serve the Citizens, Refuse
Leakage” bringing free house leakage maintenance service for low-income
families, empty nesters, and veterans who have made special contribution
to the nation, municipal and higher-level labor models, in order to
fulfill the corporate vision “create a permanently safe environment for
the human being and the society”.

公司治理Corporate Governance

On
the basis of strict compliance with the original system regulations,
Oriental Yuhong further improves its corporate governance structure,
complies with the social ethics, business ethics, constantly perfects
the system of board of directors and board of supervisors, and improves
the company's scientific management level.

Oriental
Yuhong establishes general shareholders meeting, board of directors,
board of supervisors, independent directors, and secretary of the board
of directors system, with clear functions and powers, operation in
coordination for effective checks and balances, and the board of
directors consists of four special committees, namely, strategy
committee, audit committee, compensation and evaluation committee, and
nomination committee. Shareholders of the company exercise their powers
in accordance with the company's articles of association, Rules of
Procedure of the General Shareholders' Meeting based on the Company Law,
Security Law and other laws and regulations.

On
January 22, 2016, 2015-2016 (the 13th) Annual List of China Real Estate
Industry with “New Opportunity, New Breakthrough” as the theme was held
in the Great Hall of the People, Beijing. On the meeting, Oriental
Yuhong won the honor “2015-2016 China Optimal Brand in Chinese Real
Estate Waterproofing Industry” by virtue of its supreme strength in
production, R&D, management, and after-sales system.

On
March 22, 2016, China Real Estate Association and China Real Estate
Assessment Center jointly carried out “2016 Assessment Results Release
Meeting of Top 500 China Real Estate Developers” in Beijing. Oriental
Yuhong ranked top with a rate of customer preferred brand as high as
30%. It ranked top on the list of Real Estate Developers’ Top 500
Preferred Waterproofing Brands. This is the fifth time for Oriental
Yuhont to rank top on the list.

On
June 21, 2016, the 13th (2016) China Blue Chip Real Estate Annual
Conference was convened in Beijing. Three awards – the 13th (2016) China
Blue Chip Real Estate Enterprises, Excellence Enterprises, and Most
Trustworthy Partners – were awarded. Oriental Yuhong won the honor “Most
Trustworthy Partner” with high-quality products and standard
construction service system. It was the only one that won the honor in
waterproofing industry.

On
October 14, 2016, School of Business of Renmin University of China,
Manager Magazine, Allicance for Sino-German Intelligent Manufacturing,
Simon-Kucher & Partners, jointly held 2016 Sino-German Manufacturing
Industry Summit in Run Run Shaw Conference Center, Renmin University of
China, Beijing. German and Chinese political and business leaders
gathered here to discuss the development and re-emerging way of
manufacturing industry in the economic reformation. The meeting
announced 2016 China Hidden Champion List. Oriental was included in the
list as an excellent enterprise.

Set
up quality management system, and consolidate its view of quality.
Oriental Yuhong has established a series of rules and regulations, such
as Manual on Quality Management, Quality Complaints Handling Mechanism,
Quality Responsibility investigation System, Product Quality Problem
Recall System etc., and promoted quality cultural construction. At
present, the company has passed a number of quality system
certifications, including ISO9001 Quality Management System
Certification, ISO14001 Environmental Management System Certification,
GB/T28001 Occupational Health and Safety Management System
Certification; Beijing Oriental Yuhong Waterproof Materials Testing Co.,
Ltd., a subsidiary of Oriental Yuhong, has been approved by CNAS China
Conformity Assessment Committee and adopted the CMA Measurement System
Certification, endowed therefore with the ability of issue of testing
report with legal effects. Products of the company have adopted the
Ten-ring Certification, Railway Product Certification, 3C Certification,
CE European Union Certification, FM Certification of the United States,
Russian GOST-R Certificate and other product certifications; at the
same time, products of the company also accept at least once a month
internal preliminary review and external examination to ensure its
quality.

The
company establishes a research and development, production, and testing
"separation of the three powers" quality management system, where the
three aspects of research and development, production, and testing
cooperate, support and supervise each other, to ensure that the whole
quality management system has self-repair and self-correction functions
to prevent significant fluctuation of quality of the product.

In
2016, Oriental Yuhong continuously regarded the overseas market as a
crucial cog in the international strategic map, in order to build itself
into a world top-class waterproofing enterprise. Approved by Beijing
Municipal Commission of Commerce, Oriental Yuhong got the certification
of contracting foreign projects in compliance with its strength, scale,
and performance. The in-depth promotion of “Major Region System”
facilitated the company to divide its overseas market into a number of
major regions under designated personal management, which helped the
company not only carry out its global operation layout, but also manage
effectively its market segmentation. At the same time, the company also
assigned professional technical personnel required in overseas
engineering project to provide guidance for overseas project
construction, but also trained professional technical personnel with
promoting local employment, thus sowing the seed of standardization
construction of Oriental Yuhong overseas.

By
the end of 2016, Oriental Yuhong had sold products to more than 100
countries and regions in the Middle East, Europe, Southeast Asia, and
Africa. The company is continuously supplying top-quality waterproof
products & services to global customers.

(五) 持续的盈利能力Continuous profit making capability

2016年是东方雨虹的丰收年。公司上下一心，全力以赴，苦练内功，强化营销，向管理要效益，向市场要效益，向股东和社会交上了一份满意的答卷：

Oriental
Yuhong saw good harvest in 2016. Through all-out efforts of the whole
staff, marketing strengthening, management efficiency improvement and
market development, Oriental Yuhong submitted satisfactory returns to
its shareholders and the society.

In
2016, the company realized gross RMB 7.0002328 billion, up 31.98% on a
year-on-year growth; operating profits RMB 1.0965542 billion, up 50.61%
on a year-on-year growth, total profits RMB 1.1568513 billion, up 38.18%
on a year-on-year growth against last year.

2016
is the key year for pushing forward the supply-side structural reform.
Domestic economy is centered on the general keynote of stable but
progressive work. Insisting on innovation-driven development, the
acceleration of the change in economic development mode, and the
adjustment of economic structure, the Chinese economy is controlled
within a reasonable range and shows a stable but upward development
trend.

Oriental
Yuhong issued Basic Law of Oriental Yuhong, which basically nailed down
corporate culture system, value system, and normative system. At the
same time, with “waterproof service provider” as the core, by virtue of
continuous brand reinforcement, product R&D, innovation in
application technology, multi-layer marketing network, and the layout of
plants all over China, Oriental Yuhong laid solid foundation for
developing itself from an industry pioneer to the leader of Chinese
waterproofing leader.

In
2016, the pressure of domestic economic downturn was slightly relieved.
The building industry and real estate industry restored growth, and
infrastructural construction saw stable growth in the whole year. As an
upstream section of the building industry, waterproof industry generally
showed a rising trend. Its production, sales revenue, and profit growth
were basically in line with the development of relevant industries.

合作共赢Win-win Cooperation

In
line with the concept of equality and win-win cooperation, Oriental
Yuhong carried out high-end cooperation with partners, maintained stable
and efficient supply chain, continually promoted the concept of
corporate social responsibility to supplier partners, actively expanded
the development space of the company, its partners and the industry to
jointly cope with challenges of the various types of environments and
society. With brand responsibility as its philosophy, Oriental Yuhong
provided customers with the whole-process, multidimensional, and deep
communication quality services.

Oriental
Yuhong’s major raw material suppliers are excellent domestic and
foreign enterprises such as CNPC, Sinopec, Celanese, BASF, Wacker,
Basel. After years of cooperation, the company went into close strategic
relationship with the above-mentioned companies, and it is the largest
client of those enterprises.

Centralized
purchasing is a major purchasing mode of Oriental Yuhong. With
globalization, informatization, transparent purchase, honesty,
environmental protection, and law observation as management concepts,
Oriental Yuhong made win-win development with its upstream partners. The
company takes incoming inspection process, procurement management
process, warehouse management process, production management process,
appearance inspection process, quality management process, and
technology management process as the main standards of site
certification of the supplier to ensure supply product quality.

The
company also introduced "fly check" (surprise check) to control product
quality from the technical research and development, process control,
and warehousing logistics points of view, and adopted long-term supplier
access authentication system to carry on exchange and discussion in the
technical aspects while ensuring product quality.

Moreover,
Oriental Yuhong adopted a vigorous support attitude towards the
distributors, relying on its bright brand positioning, prospective sales
strategy, the company assisted engineering channel dealers to solve
financing and corporative operation problems, and provided complete
technological support based on the principle of mutual trust, mutual
benefits, equality and win-win prospect with the dealers.

In
view of the demand by a wide range of end-consumers for high-quality
waterproof products, Oriental Yuhong makes itself accessible to the
ordinary homes through thousands of stores of nearly 2000 large-scale
domestic outfit companies and building materials markets, such as Yenova
Decoration, Shichuang, Kuoda, Easyhome, B&Q, Gold Mantis home
decoration e Station etc.

In
2016, based on its brand operation concept and in view of different
market segmentation, Oriental Yuhong met its customer requirements with
pertinence. Oriental Yufong established a 3D marketing network with
various subsidiaries such as in Beijing, Shanghai, Guangdong, Nanjing,
Sichuan, and Kunming as supporting platforms, and integrating
engineering channel, retail channel, important business, VIP business,
local business, overseas business, and engineering construction
business, so as to provide most careful service for customers.

In
addition to its original production bases in Beijing, Shanghai,
Yueyang, Jinzhou, Huizhou, Xuzhou, and Dezhou etc., in 2016, the
following production bases in Kunming, Tangshan, Xianyang and others
have already been put into operation, for full improvement and layout of
its logistics network, so as to provide customers with quick goods
delivery and completion of tasks.

2.提供优质专业服务，打造客户口碑

The
company has equipped itself with nearly one hundred technical service
personnel and provides effective construction solutions according to
customer needs. Details of quality professional services provided by
Oriental Yuhong to customers in 2016 are listed as follows:

In 2016, Oriental Yuhong established long-term friendly and stable
strategic cooperative relations with more than 150 real estate
developers and enterprise groups, including Vanke Real Estate, Poly Real
Estate, Beijing Capital Land, Xuhui Group etc. The following are some
of the awards won by Oriental Yuhong in 2016 due to its quality
professional services:

Chinese
building waterproofing market is rather complex and there are many fake
and poor-quality products. To protect customers’ rights and interests,
Oriental Yuhong provided customers with two product authenticity inquiry
ways: telephone inquiry and online inquiry. It also set up “Brand
Rights Protection Department” and announced tip-off telephone. After
getting tip-off information, Oriental Yuhong will make analysis and
arrange special persons to make investigation and collect evidences.
Then it will help law enforcement agency to crack down on fake products,
so as to protect customers’ lawful rights and interests.

As
president of the board of China Building Waterproof Association,
Oriental Yuhong contributed much to the development of the industry and
promoted the standardization of the industry. The company is determined
not to produce non-standard products, not even one square meter, plunges
itself into the market with strong self-discipline, and uses practical
actions to create a healthy, justice, and fair competition environment,
let waterproof industry operate under the sun.

In accordance with company conditions and industry conditions, Oriental
Yuhong took “making scientific and technological innovation; serving the
country by industry development” as corporate guidance. It built up an
improved scientific & technological innovation system, and carried
out the concept of independent innovation concept in construction and
engineering practices. On the foundation of domestic and overseas
advanced innovation results, it led the industry development tendency,
pushed forward industry development and improved its own and the
industry’s sustainable development capability.

Based
on its product technology strategy, the company has set up a Technology
Center that integrates product research and development, technological
equipment, applied technology, and engineering technology, formed a
“Carrier Battle Group” that covers system research and development of
“waterproof system design, materials research and development,
construction and technological service”, and subsequently undertaken a
number of national projects, such as the State “863 Program”, State Key
New Product, and the National Torch Plan etc. In 2007, Oriental Yuhong
and the Center of Advanced Elastomer Materials of Beijing University of
Chemical Technology jointly set up “Polymer Waterproof Material R&D
Center of Beijing University of Chemical Technology”. In the same year,
it established construction equipment R&D center. In 2009, Oriental
Yuhong R&D Center became the only “National Certified Corporate
Technology Center” in the industry. In 2010, it was qualified to set up
“Post-doctoral Research Center”. In 2011, it was qualified to set up
“Beijing Key Lab of Waterproof Materials”. In the same year, Oriental
Yuhong established manufacturing technique R&D center and applied
technology R&D center. In 2012, it was qualified to set up “Beijing
Engineering Lab of Advanced Rubber & Plastic Waterproof Materials”.
In 2014, the company was approved to set up its “Academician and Expert
Workstation”. In 2015, with approval of the Ministry of Science and
Technology, the company established its “Special Function Waterproof
Materials National Key Laboratory”. In 2016, the lab construction and
operation plan (2016-2020) passed the examination of the expert team of
Beijing Municipal Science & Technology Committee.

In
terms of staffing, Oriental Yuhong hired international top chemical
experts as its chief scientist for cooperation and planning of the whole
scientific and technological development of the company. As of 2016,
among the new and high-tech talent team of the company for product
research and development, applied technology, and technological
equipment, 349 are core R&D and application management personnel,
with Doctor and Master degree employees as the principal, of which, 17
have Doctorate degree, and 137 Master’s degree, 2 of them are experts
entitled to the State Council Allowance, 6 senior engineers/research
associates, 3 are science and technology new stars, 2 belongs to the New
Century National Hundred, Thousand and Ten Thousand Talent Project of
Beijing, 1 is Outstanding Young Talent of Beijing, 1 Outstanding Youth
Talent of Shunyi District, and 25 are various kinds of technology
leaders.

With
respect to mechanism of guarantee, Oriental Yuhong has formulated a
series of talent incentive systems, including Measures of Oriental
Yuhong Innovation Project Management, Methods of Incentives for
Evaluation of Scientific and Technological Achievements, and Methods of
Incentives for Rationalization Proposal etc., organized evaluation for
science and technology progress awards and evaluation of technical title
of technical personnel, and also awards to patents declared and
research papers published. Encouraged technical personnel to participate
in external talent training programs, such as “Science and Technology
New Star”, “Leading Talents”, “Labor Model”, and “Strategic Talent
Reserve” etc.; The company conducted monthly innovation project
summary, and arranged a quarterly communication and exchange with
external research and development institutions. Each year, Oriental
Yuhong held production and construction workers competition, encouraging
workers to become talent on their respective posts.

公司成立跨职能小组、设立员工意见箱、采纳合理化建议、鼓励员工创新。提倡创新多维度、多领域、不设限。

The
company has founded cross-functional team, set up employee opinion box,
adopted reasonable suggestions, and encouraged employees for
innovation. At the same time, advocated multidimensional and
multidisciplinary innovation without limits.

创新平台汇聚力量Innovation Platform Gathering Strength

东方雨虹搭建内部、外部的研发平台，加强与企业、高校的合作，开展多层次的产学研合作。

Oriental
Yuhong built up internal and external R&D platforms, strengthened
cooperation with enterprises and colleges, and carried out multi-layer
cooperation of production, academy, and research.

Adhering
to the concept of “Technology First, Innovation Foremost”, over the
past many years, the company has established cooperative relations with a
large batch of scientific research institutions and world famous
chemical engineering enterprises, such as Lehigh University of the
United States, Beijing University of Chemical Technology, Institute of
Chemistry, Chinese Academy of Sciences, the Dow Chemical Company, BASF
etc. The company has established “Emulsion Polymerization Experiment
Center” with Lehigh University of the United States, and has achieved 16
technological results through joint research and development with
Beijing University of Chemical Technology, Qingdao University of Science
and Technology, such as high weather-proof pure polyurea elastic
coasting, spray type high concentration self-hardening rubber asphalt
paint etc.; and has also jointly developed and used talents with a
number of higher learning institutions, such as Beijing University of
Chemical Technology, Tianjin University, and Hubei University of
Technology etc., by means of scholarship, and promoted sound cooperative
relations with higher learning institutions.

In
connection with its strategic development, product quality and
construction and service requirements, the company has established sound
cooperative relations with institutions such as the Waterproof
Association, Securities Regulatory Commission, Bureau of Quality and
Technical Supervision, Economic and Information Commission, Beijing
Municipal Commission of Housing and Urban-Rural Development, as well as
China Building Materials Industry Association (CBMIA) etc., continually
identified corresponding laws and statutes and various rules and
regulations, so as to meet the requirements of various parties, and
bring the company with resource advantages for its sustainable
development.

加大科研投入提升占比Enhance Investment in Science and Technology, and Increase Percentage

R&D
investment is said to be the shortcoming of Chinese manufacturing
industry. The lack of R&D investment caused low profit and
overcapacity. This phenomenon is especially highlighted in Chinese
building waterproofing industry. The whole industry seriously lacks
investment. However, Oriental Yuhong viewed science and technology
innovation as motivity of corporate development. It invested over RMB 60
million to build corporate technology center when it was just
established, and then invested RMB 25 million to buy more than 700 most
advanced international test instruments and devices. Its investment into
innovation and technology service is more than 4% of its annual
operating revenue every year on average in recent three years, and the
sum of investment is same to annual operating revenue of a waterproof
enterprise above designated size.

To
improve test capability, the company has bought 814 domestic and
foreign advanced test devices with RMB 15 million investment, for
instance, thermal magnetic stirrer, PosiTest hydraulic pullout test
equipment, Ross double planetary mixers, all-in-one potentiometric
titrimeter, air compressor, etc. Through continuous investment for many
years, the company has built up a test center proud of the highest test
level, the most improved test methods, and the most complete lineup of
test equipment.

Patent:
as of December 31, 2016, the company has applied a total of 679 patents
(448 inventions, 191 utility models, 40 appearance designs), already
authorized 247 patents (103 inventions, 129 utility models, and 15
appearance designs), in addition, Oriental Yuhong made application for 4
PCT International, another 167 pieces of patents have entered the stage
of substantive examination, and 207 verified of trademark registration.

论文著作：2016年，共发表论文23篇，其中国内核心期刊发表17篇、国内其它刊物发表论文6篇。

Books
and Papers: in 2016, published a total of 23 theses, among which 17 in
the domestic core journals, 6 in other domestic journals and
publications.

行业标准：近几年，东方雨虹受有关行业协会的委托，主持或参编国家及行业标准18个。

Industry
standard: in recent years, entrusted by industry associations, Oriental
Yuhong presided over or participated in the compilation of 18 national
industry standards.

创新应用实例Innovation Application Examples

（一）应用技术研究及推广

Application Technology Research and Promotion

东方雨虹应用技术中心于2011年9月在北京市朝阳区金盏乡成立，中心占地3800㎡，下设：

Oriental
Yuhong Applied Technology Center was established in Jinzhan Township,
Chaoyang District, Beijing City in September 2011. Occupying an area of
3,800 square meters, the center is made up of:

沥青卷材研究室Asphalt Roll Research Office

装配式屋面系统研究室Prefabricated Roofing System Research Office

预铺反粘系统研究室Pre-paving Anti-adhesive System Research Office

路桥研究室Road Bridge Research Office

涂料研究室Coatings Research Office

灌浆系统研究室Grouting System Research Office

应用性能验证实验室Application Performance Verification Research Office

系统配件工具研究室System Accessories Tools Research Office

技术咨询服务部Technical Advisory Service Department

技工小组Technician Group

针对不同产品的性能进行有针对性的技术创新，以下为公司2016年在主要产品和施工体系等方面正在开展和完成的主要实验课题项目：

In
view of the performance of different products, the company conducted
pertinent technological innovation. The following are the main
experimental topic projects that are currently developing and have
completed in 2016 in the aspects of main products and construction
systems by the company:

（二）创新营销系统

Innovative Marketing System

Oriental
Yuhong digital marketing platform Hongtu APP is a mobile platform with
business values and influence. Breaking the traditional office mode, it
integrates SAP, OA, TMS, customers’ websites, engineering channel, and
mobile apps such as Yuhong Cloud Drive, mobile OA and DMS. The necessary
data can be checked on the same platform. Online data and offline data
are integrated to improve internal communication and office efficiency,
which brought a series of reformation to corporate operation and
management and helped Oriental Yuhong into a new state.

Hongtu
APP can help employees search and operate related functions, access
important information at any time, such as issues to be handled,
important notices, personnel information, contract details, sales order
implementation process, logistic details, receipt details, and
construction photos. It achieves the functions of task, log, sign in,
subscription ID, work circle, message center, and instant massaging. The
APP simplifies the operation process, assists daily work, builds
internal information sharing platform, and achieves the management of
project, budget, materials, labor, quality, documents, and process. BI
report can be checked at any time on mobile terminal; real-time data
synchronization, and customer experience optimization are realized. It
plays the role of intelligence support of corporate management
improvement.

（三）创新管理模式

Innovative Management Mode

Oriental
Yuhong accepts all kinds of new methods and new patterns that dare to
break the routines, committed to providing customers with the best
quality products and services. Oriental Yuhong has earnestly implemented
the principle that integrates “production process automation, commerce
operation electronization, networked mode of management, and intelligent
decision-making”, continually attempted informationalized in-depth
application based on actual situation, and directed production through
informatization means, which has provided not only new thoughts to
science and technology innovation and management, but also powerful
guarantee in improving products research and development and
energy-saving and security etc., at the same time promoted the pace of
industrial economic transformation and upgrading.

安全生产Safe production

Oriental
Yuhong carried out safe production responsibility system, which covered
the whole network of construction and staff, to ensure the fulfillment
of safe production responsibility. It also completely carried out safe
production standardization and HES safe production system.

为保证贯彻安全管理制度，公司在各大工厂设立了专门的安全管理部门，配备了专职安全管理人员，实行专人专岗。

To
ensure the fulfillment of safety management system, the company set up
special safety management department in different factories and arranged professional safety management persons.

Oriental
Yuhong established a consolidated safety management team, with safety
management directors of different factories as team members and production
& operation director as leader. The team is responsible for safety
management of different factories. Long-term coordination mechanism was
set up and safety information and resources was shared. Members worked
together to ensure the accomplishment of safe production objective of the whole production & operation system.

生产基地

Production Base

安全生产相关制度、规程、标准数量（单位：项）
Relevant System, Procedures, and Standard Quantity on Safety Production

2.Liquid
asphalt and emulsion are stored in sealed tanks and transported with
sealed pipe, thus ensuring air insulation. In the product preparation
process, safety protection measures shall be fulfilled to avoid hidden
risks that the product may bring to workers in the workshop.

4.
The production, storage, transportation, use, and application of
dangerous products shall be carried out in accordance with legal safety
precautionmeasures, to ensure the safety of enterprise, employees, the public, and social facilities,

5.
Product quality safety is taken care of by pulling system. Bar code is
applied for the management of output and input of warehouse. Productquality tracing is made in the whole process, and the pass rate of random product quality check is 100%.

社会安全Social safety

企业作为重要的社会有机体，在经济活动、社会活动中，必须围绕社会安全进行企业的正常运营，以下是东方雨虹为确保社会安全实施的相关措施：

As
important social organism, enterprises should carry out normal
enterprise operation in economic and social activities while focusing on
social security. The following are relevant measures implemented by
Oriental Yuhong to ensure social security:

1.
In 2016, the company formulated and officially issued its Oriental
Yuhong Basic Law, and strictly promoted and carried out throughout the
company from top management to bottom work staff, defining clearly that
the company shall abide by the business standards and code of ethics,
obey all the laws and regulations, and respect social customs and
religion;

2.
All employees shall sign self-discipline and safety agreement to
clarify their responsibility for the safety construction of society and
community and to prevent them from risky actions for public safety;

3.
Oriental Yuhong strengthened public safety education for employees. It
banned employees from illegal entertainment and assembly. Traffic rules
must be followed to prevent bad influences to the public;

5.
As a social citizen, Oriental Yuhong continuously strengthened social
safety measures. It carried out fire drills, and issued emergency manual
to employees, to publicize emergency knowledge and build a good
firefighting circumstance;

To
leave a green environment to our descendents, Oriental Yuhong tried its
best to reduce environmental influence caused by its operation,
production, and construction. With energysaving
and emission-cutting concept, technology and management system, the
company continuously increased energy utility rate and efficiency, made
circular use of resources, and built itself into an economical and eco-friendly enterprise.

环境管理Environmental management

2016年，东方雨虹继续以“绿色生产、低碳环保”、“标准化”为管理方向，继续推进环境管理的规范化、系统化和日常化。

此外，公司还在探索“绿色生产、低碳环保”评估指标的相关内容，使环境管理绩效进一步量化，具体评价环境影响。

惠州工厂重新编制环境风险评估预案，更新环境突发事故应急预案。

徐州新沂生产基地顺利通过新沂环保局的清洁生产审核。

上海生产基地投资40万在涂料车间液料生产线和污水处理站增加环保处理设施。

锦州生产基地投资50万元更换3#卷材生产线沥青烟气处理设备，改善车间操作环境。

岳阳生产基地沥青车间，将导热油循环系统一次循环改为罐区和配料间二次循环，增加导热油能量利用率，降低天然气年使用量。

In
2016, Oriental Yuhong continued to push forward standardization and
systematization of environmental management with “green production,
low-carbon, environmental protection, and standardization” as direction.

In
addition, the company is also exploring the relevant contents on “Green
production, low-carbon environmental protection” evaluation indexes to
further quantify environmental management performance for concrete
evaluation of the environmental impact.

Xuzhou
Xinyi Production Base smoothly passed the examination on clean
production carried out by Xinyi Environmental Protection Bureau.

Shanghai
Production Based invested RMB 400,000 to increase environmental
treatment equipment for the liquid material production line of coat
workshop and sewage treatment station.

Jinzhou
Production Base invested RMB 500,000 to change asphalt smoke treatment
equipment of 3# roll production line, in order to improve the operation
environment of workshop.

The
asphalt workshop of Yueyang production base changed the one-time
circulation system of heat conduction oil to two-time circulation
between the tank area and the preparation room, which increased the
energy utilization rate of heat conduction oil and reduced annual usage
of natural gas.

东方雨虹各投产生产基地主要节能环保指标

Main Energy Saving and Environmental Protection Indicators of Various Production Bases of Oriental Yuhong in Operation

项目

Project

北京

Beijing

上海

Shanghai

岳阳

Yueyang

锦州

Jinzhou

徐州

Xuzhou

昆明

Kunming

惠州

Huizhou

唐山

Tangshan

咸阳

Xianyang

产值单耗（tce/万元）

Production Value Per Unit Consumption (tce/RMB 10,000)

0.456

0.198

0.2144

0.103

0.1758

0.35

0.069

0.28

0.72

化学需氧量排放（吨）

Chemical Oxygen Demand (COD) Emission (Ton)

0.107

0.68

2.284

0.19

0.15

0.06

0.03

0.91

2.38

绿色生产Green product

Oriental
Yuhong carried out 5S management and lean production continuously in
different production bases. Through rectification, production sites
became clean and orderly, and production processes became safe and
highly efficient. At the same time, the company strengthened system
management, to ensure it standard, scientific and highly efficient.

1.According
to the temperature requirement in the production techniques, the
heating procedure using heat conduction oil was technically transformed
in the asphalt roll workshop. The heating zone is divided to high
temperature zone and low temperature zone. Two-time micro-circulation
design was adopted in the transformation, therefore the asphalt
temperature declines by 60% in the storage and transformation
procedures, and the natural gas is saved by 26.7%;

2.In
accordance with National Development and Reform Commission under the
State Council, high energy-consuming motors were replaced by YE2
energy-saving motors. 41 motors were changed, and the total investment
reached RMB 60,000. The new plant will use energy-saving motors, too;

3.Compressed
air pipe was transformed, thus achieving air supply with connected
grid. Frequency conversion control was increased. When ensuring the
pressure, the measure also reduced the power consumption of air
compressor by 24%;

4.Additive
double dropping transformation was made. Thus the technical process was
improved, the dropping speed was increased, the evenness was improved,
and the production efficiency was obviously enhanced;

5.The
energy-saving and cost-reducing transformation project was carried out
for high polymer production line. Through reducing the decomposition
temperature of materials, increasing screw speed, transforming roll
hanging stand, relieving the internal stress of material, improving
thermal stability of products, and reducing after-shrinkage, the roll
length control precision was reduced from ±10cm to ±1cm, normal
consumption and power energy consumption were reduced, and the
production capacity was increased;

6.For
the 1.2m high polymer production line, the online edge trimming system
was adjusted to behind the gluing and coating procedure, thus
transforming the situation that the surface of offcut is coated with
adhesive or mastic and can’t be recovered. Every day RMB 2,000
production cost can be saved thanks to this transformation;

7.Weighting
device and weight data recording device were increased to the roller
post of asphalt roll workshop, in order to record the weight of each
roll produced by each shift, precisely measure the output, adjust the
technical parameters of the equipment in time, achieve accurate control,
improve product quality, and reduce the consumption of raw materials;

8.The
boiler was added with smart energy-saving constant-pressure control
system. On the premise of meeting the temperature requirement for heat
conduction oil in the production technique, power and natural gas
consumption were saved, and production cost was reduced. Annual power
consumption cost can be saved by RMB 316,800; natural gas consumption
can be saved by RMB 543,510, adding up to RMB 860,310;

9.In
the asphalt roll workshop, after cooling water tower is added to
recirculating cooling water system of the production line, water
consumption of the roll workshop averagely declined by 2,000
tons/month;

10.According
to the actual power load of the production line, some power
transformers were suspended. According to local policy, the application
for power load based on percent calculation was made, so as to save the
basic power charges of transformers and unit power charge, and
effectively reduce the power cost of the plant;

11.Periodical
inspection over the temperature of pipes and external thermal
insulation layer was made, timely replacement and repair was made, so as
to reduce thermal energy loss;

12.The
power supply of the employees’ bath room was changed to solar energy
and auxiliary electrical heating, so as to save energy consumption;

13.Chargeable
power meter was installed to dormitory to improve employees’ awareness
of energy saving and reasonably control the use of power.

Producers
must be responsible for the waste caused in the production. In
accordance with this principle, Oriental Yuhong carried out
environmental evaluation, increased environmental
investment, unified production site management, and strengthened
control and treatment on pollutants and wastes, to reduce influence on
community and surrounding ecological environment.

绿色施工Green building

Oriental
Yuhong strictly abides by the following building principles: reducing
site disturbance, respecting local environment, paying attention to
climate, saving energy, reducing
environmental pollution, increasing environmental quality, carrying out
scientific management, and ensuring construction quality, so as to
reduce construction disturbance and influence to the surrounding environment to the minimum level.

The
company has spontaneously developed a series of mechanical construction
equipment, such as the 200m long coiled materials construction vehicle,
the 60m within coiled materials construction vehicle; electric
high-pressure airless spraying machine, paint spray gun; crawl automatic
welding machine, welding machine without perforation, and hand-held
welding machine etc., most of these innovative equipment are the first
in the industry, and compared with the traditional construction mode,
while guaranteeing and improving the quality, they can improve the
construction efficiency for 3-5 times, shorten the construction period
40%-60%, reduce labor costs, and are also characterized by accurate
mixing of ingredients, uniformed and stable, with high technology
content.

In
promoting mechanization construction, Oriental Yuhong pays attention to
the integration of practice with training, organized many times
construction competition and field training, and promoted company wide
mechanization construction.

The
company called employees to be against food waste. It called different
units to promote dinner table civilized etiquette, and fight against
disposable tableware. Clean plate was advocated. Separate meal system
was carried out for guest entertainment to reduce waste on dinner table.
Employees warned and monitored each other and formed a good atmosphere
“frugalness is honorable, and waste is shameful”.

In
2016, the company actively advocated living effectively “bitter days,
hard days, and lean days" and, from major issues as management reform to
minor topics as water-saving and power-conservation, making the company
strong and increase efficiency has been the constant magic weapon of an
enterprise to be industrious and thrifty in management. The various
subsidiaries of Oriental Yuhong, including its Tianjin Company,
Guangdong Company, Sichuan Company, Jiangsu Woniushan Company etc., all
have carried on industry and frugality related training and practices,
saved a large amount of manpower, material resources, and financial
resources, and created a good atmosphere.

Employees are the most precious resources and wealth of an enterprise. Oriental Yuhong treasures highly the value of its employees. Adhering to the enterprise tenet of "for the country, for the society, for customers, for employees, for the shareholders", in combination with the company's developmental stage, industry features, and talent structure characteristics, Oriental Yuhong exerted efforts to explore relevant effective approach, sparing no efforts to maintain the legitimate rights and interests of its employees. In 2016, the company created internal and external communication channels, highlighted protection for the rights and interests of vulnerable groups, and strengthened security, environmental protection, and occupational health management; at the same time, built a multi-dimensional and solid employees care system, implemented diversified staff incentive policies, straightened out all employee career development channels, continuously promoted their growth and development, continually improved employee satisfaction, made great efforts to guarantee the realization of rights and interests of the employees, rewarded employees and contributed to the society wholeheartedly.

人才队伍建设Talent Team Construction

Oriental Yuhong puts the people-centered development philosophy into practice, it plans to recruit 200-300 fresh university graduates each year, introduces American scientists, extensively absorbs excellent talents from both home and abroad, and won the national and provincial "Thousand Talents Program" award. The company adheres to its practice of retaining talent through cause, through benefits, through environment, and through emotional attachment, optimizes its talent team structure, and jointly promotes the lasting foundation of enterprise development.

The company complies with the international convention on labor and human rights, abides by the Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic of China and the Trade Union Law of the People's Republic of China, advocates recruitment policy of equality and non-discrimination, prohibits any acts of discrimination in recruitment, compensation, benefits, and promotion, gives fair treatment of employees of different nationality, race, and cultural background, fully respects the habits and customs of employees of all nationalities, respects employee’s rights to freedom of religious belief; focuses on promoting employment of women and minorities, and continually creates for employees a just, fair, harmonious, and humanistic working environment. At present, the company has 225 minority employees, accounting for 4.14%.

Women's rights are one of the important rights of the human rights. The company respects female employee career development, practices equal pay with equal post for both men and women employees, women employees enjoy completely equal political rights, and under equal conditions, promotion favors female employees. As of the end of 2016, female senior management in the company accounted for 23.68%; in Trade Union management, employee general assembly and other important decision-making meetings, female employees accounted for 22.2% of the total number of all participants, enjoying equal rights and status.

The company cares for women employees' physical and mental health, strictly abides by the relevant state provisions, fully guarantees female employees "3-period" holidays, strictly prohibits female employees from participating in the 4th grade heavy manual works, strictly prohibits female employees from cold water and low temperature operation during menstrual period. Considering the special needs of female employees, in connection with hospital suggestions, during the different stages of pregnancy of female employees, supplements them with additional antenatal care holidays, after birth holidays, the post return rate of female employees will reach 100%. During "March 8th" (International Women’s Day) each year, the company prepares carefully personalized gift for every female employee, and they enjoy a half-day welfare holiday.

The company protects practically the legitimate rights and interests of the disabled and other vulnerable groups; the company also participates in recruitment fair specially prepared for the disabled every year, and provided for the disabled many posts of employment opportunities, such as sales representative, construction manager, and internal or office work. For instance, the company employed Mr. Xiong disabled to work in the company for 15 years, and has established with him a long-term stable open-ended employment relationship with the company. When his family fell continuously on hard times, aside from starting a loving fund, the company also initiated a full-staff donation program to help him live through the difficult times.

弱势群体Vulnerable Groups

( 一 )基本人权的保障（制度、渠道）

Basic Human Rights Protection (System, Channel)

东方雨虹建立了严格的人力资源管理制度，严禁和抵制任何形式的雇用童工行为，严格避免强制劳动现象发生，至今没有出现过雇佣童工、强制劳动的现象。

Oriental Yuhong has established strict human resource management system, strictly prohibiting and resisting the recruitment of any form of child labor, strictly avoiding the occurrence of forced labor, as a result, the phenomenon of recruitment of child labor and forced labor has never occurred so far.

The company advocates "border-less communication" concept, and actively builds internal and external no-boundary communication channel. Employees may report all kinds of human rights issues or problems that they have encountered or may possibly occur across departments, cross-posts, cross-regional via office software, enterprise email, petition, report box and other kinds of online and offline channels. To the impeachment and petitions of employees, the company will investigate and deal with in time, and each investigation will reach its conclusion, and will never delay. In 2016, there is no, not even one, report of a case of violation of human rights or petition have occurred.

The company has set up Trade Union organization in accordance with relevant provisions, with employee enrollment rate reaching 100%. At the same time, the company has set up business committee to encourage employees to actively participate in enterprise innovation, business management, to listen to the voice of the operation front line, and respect the rights and interests of employees at the grass-roots level.

The Trade Union has set up labor dispute mediation committee and labor dispute mediator team, adheres to its practices of deep engagement with employees, listens to their voices through various channels, answers carefully hot, difficult and focus issues of their concern. To the major issues or problems reflected by employees, the Trade Union adheres to the principle that "consulting must be replied, complaints must be dealt with, and processing or treatment must have a result".

Employees’ labor relation, salary & benefit, labor protection, work time, holiday system and other events that are in close relation with employees’ interests are discussed by employee representative conference strictly in accordance with related policies and regulations. The conference fully listened to opinions and adopted suggestions of the staff, then negotiated, announced, and specified them in collective contracts.

In 2016, Oriental Yuhong laid emphasis on the introduction of professional macro data of the outside research organizations. When various industries see growth slowdown, it’s important to investigate the salary growth in various industries and regions. To see from the salary investigation result of CIIC in 2016, general salary growth in whole China declined from several years ago. Companies prefer better control of labor cost. In spite of uncertainties of market economy, Oriental Yuhong still insists on a salary growth rate higher than market average, in order to continuously give employees more competitive salaries.

Oriental Yuhong established and improved labor system and standardized employment management. 100% employees signed labor contracts. The company improved the system of posts to meet market demands and corporate development demands. It also established competitive employment system and gradually optimized employment structure, to avoid overuse of part-time laborers and guarantee employees’ benefit.

In 2016, the number of net increase of employees Oriental Yuhong was 1186, that is, created 1186 new jobs employment opportunities. The company insisted on localization recruitment policy, under equal conditions, priority was given to the hiring of local staff, which, relying on the rapid local business development of the company, strongly promoted the local employment rate. With its continuous strategic map expansion, the company had set up wholly owned subsidiaries in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Sichuan, Kunming, Nanjing, Shandong and Jiangsu respectively; established a production, R&D logistics bases in Beijing, Shanghai, Yueyang, Jinzhou, Huizhou, Xuzhou, Dezhou, Kunming, Tangshan, Xianyang, Wuhu, Luzhou, Hangzhou, Qingdao, Chuzhou, etc., which had greatly increased the local industrial aggregate economic volume, promoted the employment of local residents, and played a positive role in promoting the optimization of industrial structure and enriching industrial categories.

( 三 ) 校园招聘
Campus recruitment

2016年，东方雨虹在全国58所院校开展宣传，共组织大型校园宣讲会44场，参加双选会23场，接收应届毕业生245人。

In 2016, Oriental Yuhong carried out promotion and publicity activities in 58 colleges and universities across the country, organized a total of 44 large-scale campus talks, participated in 23 two-way selection meetings, and accepted 245 current year’s graduates.

The company boasts a perfect compensation incentive system. Based on its post value evaluation and according to the principle of remuneration level marketization, the company defines its salary according to post, once the post changes, the remuneration will adjust accordingly, gives priority to efficiency, renders remuneration according to performance, takes count of justice; and at the same time, conducts regular salary review and adjustment, gradually improves all forms of medium and long-term incentives, strives to provide employees with stable, attractive, and relatively more perfect compensation system, and enjoys together the achievement of enterprise development.

Over the past three years, the average growth rate of employee’s remuneration was 10%, higher than the social average level of salary increase. Even in 2016 during the economic “new normal” circumstance, the company still continued to increase the staff salary, and tilted towards employees of the middle-level cadre staff, committed to developing and cultivating industry technology leading type technical personnel of Oriental Yuhong, and building the first-class waterproof craftsmen team.

Furthermore, Oriental Yuhong has improved social insurance and housing provident fund systems. It paid insurances for employees’ endowment, medical treatment, unemployment, employment injury, maternity and housing provident fund, with 100 percent coverage for all the employees. Meanwhile, the company specially bought accident insurance for employees who went on business trip throughout the year. It also bought accident and commercial insurance for employees who went on business trip of training or group activity. Make employees work comfortably and feel free to go on business trip.

In 2016, on the basis of the annual assessment for excellent and advanced units and individual employees, the company supplemented the category of quarterly-star commendation, according to which, advanced collectives and individuals with outstanding performance and fast growth in terms of engineering, technology, management, function, and sales etc., would be commended, and the awards were conferred especially to those front-line personnel fighting at the grass-roots level and ordinary sales personnel who had always set new records.

Oriental Yuhong treats employees as family members, committed to building four welfare care systems, included life & assistance, health & safety, entertainment & care, tourist & holiday. For each significant day, Oriental Yuhong always tries to achieve "love, no miss". On staff birthday or wedding day, the company sends its birthday gift, new wedding gift money at the earliest time possible; during Mid-Autumn Festival, the Dragon-boat Festival, Spring Festival and other traditional festivals, the company holds all kinds of employee activities and distributes gifts; during the Spring Festival every year, the company also, with full gratitude, extends its sincere greetings and New Year’s gift to the parents of employees.

The company pays attention to balancing the work and life of employees, advocates "Happy Work, Healthy Life" concept, strives to create conditions to enrich employee’s life outside of the eight working hours and to improve the well-being of their work. Strictly carries out employee paid-leave system, supports the free combination of a variety of holidays, and facilitates employee’s free travel with leisure. In 2016, the corporation revised annual vacation management method for employees. It lengthened employees’ annual vacation to 19 days, higher than the vacation length required by the state.

In recent years, Oriental Yuhong has always adhered to its objective of duty first, actively advocated and participated in public welfare and charity undertakings, took its field of operation as the key field for routine public welfare support, and worked hard to build itself into a first-class enterprise with a high sense of corporate social responsibility. The company organized regularly unpaid blood donation, actively carried on “serve the masses, refuse leakage” public welfare activities, provided the vulnerable groups with free waterproofing maintenance, supported environmental protection undertakings, and actively plunged itself into social public welfare and charity undertakings in joint hands with its employees.

On November 5, the employees of Oriental Yuhong came to the headquarter office building to donate blood for rescuing life. The 2016 Oriental Yuhong “Voluntary Blood Donation Week” was carried out here. 99 employees participate in the activity, and the average blood donation amount reached 200cc, and the total blood donation amount reached 17200cc. Branches and subsidiaries of Oriental Yuhong also carried out “Voluntary Blood Donation Week” public welfare activity.

From the beginning of 2009, Oriental Yuhong carried out “Serve Citizens, Refuse Leakage” activity. By November 30, 2016, more than 480 public welfare activities had been carried out. Free water leakage repair service was given to over 20 empty-nest families, old persons living alone, families with low income, and those families with outstanding contribution to the society. Waterproofing knowledge was publicized to dozens of thousands of citizens, and waterproofing science manuals were sent to them. Via TV and Internet, the anti-leakage concept of Oriental Yuhong was spread to hundreds of thousands of persons. TV media that have cooperated with Oriental Yuhong to spread anti-leakage concept include Life + program of BTV Life Channel, Space Interchange program of CCTV 2; Wuhan TV, Changsha TV, and Chengdu TV.

Oriental Yuhong was invited to join in the Fifth China Charity Festival and won two awards

On January 21, 2016, the Fifth China Charity Festival was held in Beijing. Orientla Yuhong was invited to join in the festival. It won “2015 China Charity Award - Collective Award”. And its public welfare project “Oriental Yuhong around You – Serve Citizens, Refuse Leakage” won “2015 Charity Project Award”. This is the fourth consecutive year for Oriental Yuhong to win charity award.

Public welfare is always a social responsibility gladly undertaken by Oirental Yuhong. With the care for education and in order to fulfill the call for frugality, on Mar. 28, Oriental Yuhong carried out “Empty Plate, Education Assist” public welfare activity.

爱心传递Transmission of Love

Oriental Yuhong took social responsibility as its own responsibility. The company paid back the society with education support, environmental protection, culture promotion, and social care. It implemented social responsibility with practical actions, promoted harmonious and steady development of enterprise and society, integrated social responsibility into corporate development, and combined corporate culture construction with social responsibility. It called different circles to devote themselves to public welfare and contribute to the creation of a healthy life environment.

The public welfare activity was carried out to send love to an old anti-Japanese soldier who was worried about the leakage of his old house. Continuous water leakage caused the peeling of interior wall, humidity and mildew. The ex-soldier had to open windows to ensure ventilation. Also tortured by rheumatism and trachitis, he is in a bad health condition. In order to completely solve water leakage problem of the old soldier’s house, Oriental Yuhong sent a professional construction team to diagnose the leakage. The team made careful and through inspection on leakage points and put forward reasonable solution. Professionals took waterproofing measure to repair the house. Every leakage point was given multiple times of waterproofing coating, in order to create a reassuring living environment for the old solider.

In the morning of April 7, Xuzhou Woniushan New-type Waterproofing Material Co., Ltd. donated scholarship to Tangshan Shangying Primary School and attended the commendation conference of the school. Mr. Yang Wenxin, Director of Xuzhou Woniushan, Li Fuchun, Representative of Xinyi Education Development Base, Sun Jingqiu, Principal of Tangtian Town Central Primary School, parents of award-winning students, students and teachers of the whole primary school attended the conference.

Yueyang Oriental Yuhong donated book fund to the rural culture hall of Yunxi District

On April 27, “Yunxi Lecture” was delivered in Yunxi District, Yueyang City. It was hosted by Du Yu, standing member of the district Party Committee, organization department director, and united front work department director, as well as Hu Die, standing member of the district Party Committee and propaganda department director. Yueyang Oriental Yuhong was invited to hear the lecture and it donated RMB 10,000 book fund to the rural culture hall of Yunxi District.